AB InBev stock up on report it may sell assets after scrapping Asia IPO plan

AB InBev called off the initial public offering of its Asian business on Friday, citing in part "the prevailing market conditions." The proceeds from the IPO would have helped the company reduce its debt, a result of dealmaking that made it the world's largest brewer.

Citing people familiar with the matter, the Journal reported that the company is now hoping to raise at least $10 billion from selling off assets, including some that were a major part of the called-off IPO. The company is also considering cutting its dividend again after slashing it last year, but some board members are reluctant to do so, the people told the Journal.

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Budweiser Brewer Explores Asset Sales After Calling Off Asia IPOAnheuser-Busch InBev is considering selling off business units in South Korea, Australia and Central America to cut its massive debt pile as it pursues a backup plan after calling off the nearly $10 billion listing of its Asian business, according to people familiar with the matter. Wait, so growth through debt-fueled acquisitions is NOT a sound business strategy? Perhaps MBA programs should stop teaching this garbage. I suppose that's why it did not work for Tyco, Adelphia, Enron, Bank of America, General Electric, Litton Industries, AOL (remember them?) .. Add this to the list of corporate break ups. AntiTrustNow
Source: WSJ - 🏆 98. / 63 Read more »